One of the biggest commercial real estate brokerage firms in New Jersey is reporting some positive numbers for New Jersey’s real estate and construction economy. According to recent information released by the company, new industrial space was built at the fastest pace seen since 2002 last year. In addition, nearly 12 million square feet of existing tenant space was reabsorbed by the tenants back in the market.
According to Cushman and Wakefield, demand seems to be on the rise for warehouses and distribution centers in the state. It seems likely this demand will only continue to go up as people shop on line and want quick deliveries that can only be provided from closer warehousing and processing centers. In addition, it’s not surprising to learn that the numbers show a large portion of this activity taking place in northern New Jersey near the ports.
A slight downturn in the statewide vacancy rate to 8.2% coupled with a need for additional space has resulted in a mini-construction boom to meet the demand. This resulted in the addition of about 7.5 million square feet of new industrial space in New Jersey in 2014. Another 3.1 million square feet is already in the pipeline and scheduled for completion this year.
This is certainly good news for construction and real estate firms working in New Jersey!